Effectively handling accounts payable in Xero ensures smooth cash flow and timely supplier payments. Here’s a guide to using Xero accounts payable tools for tracking, paying, and automating supplier bills.
1. Access the Bills to Pay Section in Xero
To get started:
- Log in to Xero and navigate to the Business tab.
- Select Bills to Pay to view all outstanding supplier bills, making it easy to monitor accounts payable vendor management.
2. Track Supplier Bills in Xero
In the Bills to Pay section:
- View a comprehensive list of unpaid bills from your suppliers.
- Use filters to organize bills by due date, supplier, or status (e.g., awaiting approval or awaiting payment), streamlining your Xero accounts payable process.
3. Mark Bills as Paid
When a bill is paid:
- Click on the bill you’d like to mark as paid.
- Use Add Payment to manually enter the payment details, or take advantage of bank reconciliation to automatically match payments and mark them as settled.
4. Use Xero Bank Reconciliation
If you have connected your bank account to Xero:
- Go to the Reconcile tab to match bill payments with bank transactions.
- Xero payables will suggest matches for payments, simplifying the process of marking bills as paid.
5. Monitor and Automate Payment Status
Stay on top of payment statuses:
- Track payment history in Xero and set reminders for due bills, helping you avoid late payments.
- Utilize Xero accounts payable automation tools to streamline the process, making Xero AP automation a valuable feature for managing recurring bills.
By following these steps, you can efficiently manage accounts payable in Xero, ensuring timely vendor payments and a streamlined accounts payable process.